Senator Warren Cites Investor Risks, Urges SEC to Delay SpaceX IPO

[The Financial News] Elizabeth Ann Warren, a Democratic U.S. senator from Massachusetts, has strongly urged the U.S. Securities and Exchange Commission (SEC) to delay SpaceX's initial public offering (IPO).
According to a Business Insider (BI) report on the 10th local time, a letter released by Warren's office told SEC Chair Paul Atkins that "even under normal circumstances, the sheer scale of SpaceX's IPO would require close SEC scrutiny and careful attention to investor demand." It added, "But these are not normal circumstances," and called for the IPO to be delayed because of several additional concerns.
She pointed out that investor protections appear inadequate relative to the company's enormous valuation.
SpaceX is scheduled to debut on NASDAQ on the 12th. Unless action such as a trading suspension is taken, Chair Atkins and the SEC have little time to review Warren's concerns.
SpaceX's expected market capitalization at listing is about $1.77 trillion, or roughly 2,697 trillion won. Even though the company is not currently profitable, that valuation would instantly place it among the world's most valuable companies.
Warren, a member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs and a former Democratic presidential primary candidate, took particular issue with the fact that major stock market indexes have recently changed, or are considering changing, their rules to add SpaceX quickly.
In a letter dated the 9th, she said, "SpaceX's IPO raises new concerns. As major stock market indexes are manipulated to favor certain companies, millions of investors holding low-cost investment products known as 'passive index funds'—which are favored by retail investors—have been forced to invest in SpaceX without any choice, leaving them exposed to the company's significant risks."
The market believes Warren's demand is unlikely to actually stop or delay SpaceX's listing.
That is because, although she has long pressured corporate CEOs, Democrats alone do not have the power to force action.
Recently, NVIDIA CEO Jensen Huang also declined a request to testify at a hearing related to his company's business in China. For Warren's push to gain traction, support from Republicans or cooperation from Paul Atkins, the SEC chair appointed by President Donald Trump, would be essential.
Atkins, who was appointed after a party-line vote, signaled a deregulatory stance when he took office, declaring that he would "make IPOs great again."
A SEC spokesperson confirmed receipt of Warren's letter but declined to comment further.
SpaceX did not immediately respond to a request for comment on Warren's letter.

jjyoon@fnnews.com Yoon Jae-jun Reporter